ED Raids Expose ₹300-Crore Ponzi Network Across NCR
India's Enforcement Directorate conducted coordinated searches across 20 locations in the National Capital Region on Wednesday, targeting a sophisticated Ponzi scheme that allegedly defrauded investors of more than ₹300 crore. The operation centers on Maxizone, a fraudulent investment platform whose promoters have been accused of luring victims with promises of extraordinary returns before disappearing with their savings.
The raids in Ghaziabad, Noida, and Meerut mark a significant escalation in India's crackdown on financial fraud schemes, with investigators now working to trace the full extent of the network and recover misappropriated funds.
Background and Context
Ponzi schemes have proliferated across India's urban centers in recent years, exploiting regulatory gaps and investors' desire for high-yield returns in a challenging economic environment. The Maxizone operation represents one of the larger cases to emerge from the NCR region, where financial fraud has become increasingly sophisticated through digital platforms and complex corporate structures.
According to preliminary findings, the scheme operated by offering investors unusually high returns, initially paying out small profits to build credibility before encouraging larger investments. This classic Ponzi structure ultimately collapsed when new investment inflows could no longer sustain the promised payouts to earlier investors.
Key Figures and Entities
The investigation has identified Chandra Bhushan Singh and Priyanka Singh as the primary promoters behind Maxizone. Both individuals are currently in judicial custody following their arrest earlier in the investigation. ED officials indicate that the couple orchestrated the scheme with the help of a network of financial advisors, technical assistants, and agents who facilitated investor recruitment and fund transfers.
"Our investigation has revealed a structured network behind the scheme, including financial advisors, technical assistants, and agents who helped in enticing investors and facilitating fund transfers," an ED official stated during the raids.
Legal and Financial Mechanisms
The Enforcement Directorate's operation involved extensive digital forensics and banking audits to trace the flow of misappropriated funds. Investigators seized key documents, digital records, banking transactions, and investor files during the searches, which are now being analyzed to map the complete financial network behind the scheme.
Technical scrutiny of online platforms and financial networks associated with the promoters is underway to identify hidden channels used for money laundering and fund diversion. The investigation team is examining investor accounts, transaction flows, and digital communications to build a comprehensive case against all participants in the fraud.
International Implications and Policy Response
While this case primarily affects domestic investors, it highlights broader challenges in regulating cross-border financial flows and digital investment platforms. The Enforcement Directorate has emphasized that such coordinated operations will continue as part of a larger effort to protect investors and maintain market integrity.
Regulatory authorities have urged investors to exercise caution and consult official guidelines before making investment decisions. The ED's approach signals a shift toward more proactive enforcement against financial fraud, with particular focus on schemes that exploit digital platforms to reach vulnerable investors across multiple jurisdictions.
Sources
This report is based on official statements from India's Enforcement Directorate, court documents related to the judicial custody of the accused, and field reporting from the raid locations in Ghaziabad, Noida, and Meerut. Information has also been drawn from preliminary findings released by investigators and public statements made during the enforcement operation.
